Banking stocks recorded significant gains on Monday, March 24, 2025, propelling the Nifty Bank index into the green territory for the eighth consecutive session.
The index rose by 2% to reach 51,621 in morning trade, marking its highest level since early January when it last crossed the 51,500-mark.
The rally comes amid a broader uptrend in the market, with several banking stocks hitting multi-year highs.
Kotak Mahindra Bank emerged as the top gainer on the Nifty Bank index, with its shares jumping over 3% to trade at nearly ₹2,151 apiece. This is the stock’s highest level in three years.
The surge follows the bank’s announcement of key leadership appointments, including Bhavnish Lathia as its new Chief Technology Officer (CTO). Kotak Mahindra Bank is also the top gainer on both the Sensex and Nifty 50 indices.
Canara Bank and Punjab National Bank (PNB) also witnessed strong gains, with their shares rising over 2.6% each. Canara Bank shares were trading at ₹89.85 apiece, This implies an upside potential of nearly 11% from its previous closing price.
The stock has shown a strong recovery after hitting a 52-week low of Rs 78.60 on March 3. Meanwhile, PNB shares reached a one-month high of ₹95.58 apiece.
Heavyweight Axis Bank shares climbed over 2% to trade at ₹1,094 apiece, their highest level so far in 2025.
Other major gainers included Federal Bank, IDFC First Bank, and Bank of Baroda, each trading over 2% higher. The rally in banking stocks reflects renewed investor confidence in the sector amid improving market sentiment.
In contrast, IndusInd Bank shares bucked the trend, trading marginally lower at ₹686 apiece. The stock has experienced significant volatility in recent weeks following the bank’s disclosure of accounting lapses in its derivatives portfolio.
The recent rally in bank stocks coincides with foreign portfolio investors (FPIs) actively rebalancing their portfolios. While FPIs have been reducing their exposure to sectors like IT and FMCG due to global economic uncertainties, financials continue to be a preferred choice, accounting for nearly one-third of their total investments in Indian equities.
On Friday, March 21, 2025, foreign institutional investors (FIIs) demonstrated strong activity in the markets. They purchased equities worth ₹7,470.30 crores in the cash markets, signalling renewed confidence. Additionally, FIIs added long positions worth ₹2,419.03 crore in index options and ₹1,187.81 crore in stock options, reflecting a bullish outlook on the broader market and specific stocks.
The Nifty Bank index’s sustained upward movement highlights the resilience of the banking sector, with key players like Kotak Mahindra Bank, Canara Bank, and Axis Bank leading the charge.
While most banking stocks are riding the wave of optimism, IndusInd Bank’s underperformance serves as a reminder of the sector’s inherent volatility.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 24, 2025, 12:14 PM IST
Dev Sethia
Dev is a content writer with over 2 years of experience at Business Today, Times of India, and Financial Express. He has also contributed stories in Hindi for BT Bazaar and Khalsa Bandhan News Paper. A journalism postgraduate from ACJ-Bloomberg, Dev enjoys spending his spare time on the cricket pitch.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
